Instrument library
Revenue-linked

Phantom Equity

Economic rights (dividends, exit payout) without legal ownership. Pays based on valuation growth or profit milestones.

How it works
Contract grants the investor rights mirroring equity — dividends, an exit waterfall slice — without issuing shares. No cap table impact, no governance rights.
Best for

Founders who refuse to dilute the cap table but need growth capital.

no dilution
growth capital
founder control

Related in Revenue-linked